Seemless transfers of funds between Kraken and the Wallet - custodial

[RGPankO]

I will give an example for Bitcoin, however this is applicable for everything.

If I have 1 Bitcoin on Kraken and I am in the wallet I should have a button for "transfer funds".
Doing so custodian doesn't change - it's Kraken.
No blockchain transaction happens.

However my Kraken account now goes down to, let's say 0.9 Bitcoin, while my wallet debits me 0.1.

Ofcourse this has to be approved with the standart Kraken security checks - 2FA for withdrawal, Email, etc etc.

Once the transfer happens though then the security checks for my Bitcoin transferred to the wallet are subject to my settings of the wallet, not Kraken's main platform's.

(reminder, this is custodial part)

I can make a blockchain transaction - the send funds will be done by Kraken and signed by them - as again we didn't change custodial.
I can still use my blockchain addresses generated by the private key to deposit. Just "depositing", which is more like debiting, from Kraken to the Kraken wallet takes no Blockchain transaction.
It acts like a sub-account on Kraken platform.

The links can be done by public-key-to-account.
So if I delete the wallet when I reinstall it and put the same private key I automatically get access back to the Kraken sub-account.

I am not sure on legal side how does this work as I might give the key to someone else, who is not a customer of the company.
Maybe in the ToC I mentioned earlier it might be like that if I use this feature I am legally liable that I will not transfer the ownership to someone else by giving him the private key.

[RGPankO]

I am not experiencing an issue, this is a feature request / idea, it isn't a bug report.

As of right now I am unable to transfer funds from Kraken to the Wallet without a blockchain transaction, no?

What I am suggesting, and describing here, is the ability to do so.
Which would obviously be custodial.

Idea is that one wallet can have both - a custodial and non-custodial part.
The custodial one can quickly exhange between Kraken platform/exchange and Kraken wallet.
Also leverage up Kraken liquidity - so you can have access to Bitcoin mainchain and Bitcoin LN.
Same with Ethereum on various L2s that Kraken operates and mainnet Ethereum.
@Nickellaaron